# National Energy Services Reunited Corp. (NESR) Informational only - not investment advice. CIK: 0001698514 SIC: 1389 Oil & Gas Field Services, NEC SIC breadcrumb: [Mining](/division/B/) > [SIC Major Group 13](/major-group/13/) > [SIC 1389 Oil & Gas Field Services, NEC](/industry/1389/) Latest 10-K filed: 2026-03-06 SEC page: https://www.sec.gov/edgar/browse/?CIK=1698514 Filing source: https://www.sec.gov/Archives/edgar/data/1698514/000149315226009139/form10-k.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-03-06 · accession 0001493152-26-009139 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001698514.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 1,324,047,000 USD | 2025 | verified | | Net income | 51,132,000 USD | 2025 | verified | | Assets | 1,851,519,000 USD | 2025 | verified | | Free cash flow | 120,788,000 USD | 2025 | computed | | Net margin | 3.86% | 2025 | computed | | Operating margin | 7.43% | 2025 | computed | | Revenue YoY | +1.72% | 2025 | computed | | ROE | 5.28% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | NESR | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 3.9% | 3.7% | 57 | 15 | | Operating margin | 7.4% | 3.9% | 69 | 14 | | Revenue growth | 1.7% | -3.1% | 79 | 15 | | FCF margin | 9.1% | 4.9% | 86 | 15 | | ROE | 5.3% | 4.1% | 57 | 15 | | ROA | 2.8% | 2.8% | 50 | 15 | | Liabilities / equity | 0.91 | 0.83 | 57 | 15 | | Current ratio | 1.04 | 1.99 | 7 | 15 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 1389 Oil & Gas Field Services, NEC, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1324047000 | USD | 2025 | 2026-03-06 | | Net income | 51132000 | USD | 2025 | 2026-03-06 | | Assets | 1851519000 | USD | 2025 | 2026-03-06 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001698514.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | 834,152,000 | 876,729,000 | 909,517,000 | 1,145,915,000 | 1,301,704,000 | 1,324,047,000 | | Net income | 8,350,000 | 28,353,000 | | | 16,555,000 | -64,568,000 | -36,420,000 | 12,580,000 | 76,310,000 | 51,132,000 | | Operating income | | -4,214,790 | | | 35,278,000 | -43,332,000 | -917,000 | 80,703,000 | 137,704,000 | 98,320,000 | | Gross profit | | | | | 77,907,000 | 2,781,000 | 65,478,000 | 148,650,000 | 208,673,000 | 164,730,000 | | Diluted EPS | | | | | 0.18 | -0.71 | -0.39 | 0.13 | 0.80 | 0.52 | | Operating cash flow | | -865,000 | | | 134,453,000 | 127,743,000 | 92,576,000 | 176,959,000 | 229,329,000 | 264,242,000 | | Capital expenditures | | | | | | 107,076,000 | 122,415,000 | 68,190,000 | 105,105,000 | 143,454,000 | | Assets | | 231,422,540 | 1,343,309,000 | 1,522,364,000 | 1,686,541,000 | 1,831,292,000 | 1,828,327,000 | 1,797,740,000 | 1,773,678,000 | 1,851,519,000 | | Liabilities | | 230,143,000 | 512,318,000 | 635,892,000 | 826,598,000 | 1,010,258,000 | 1,025,979,000 | 976,246,000 | 865,446,000 | 883,603,000 | | Stockholders' equity | 382,081,000 | 389,429,000 | 830,991,000 | 835,157,000 | 859,943,000 | 821,034,000 | 802,348,000 | 821,494,000 | 908,232,000 | 967,916,000 | | Cash and cash equivalents | | 741,096 | 24,892,000 | 73,201,000 | 75,012,000 | 205,772,000 | 78,853,000 | 67,821,000 | 107,956,000 | 124,797,000 | | Free cash flow | | | | | | 20,667,000 | -29,839,000 | 108,769,000 | 124,224,000 | 120,788,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | 1.98% | -7.36% | -4.00% | 1.10% | 5.86% | 3.86% | | Operating margin | | | | | 4.23% | -4.94% | -0.10% | 7.04% | 10.58% | 7.43% | | Return on equity | 2.19% | 7.28% | | | 1.93% | -7.86% | -4.54% | 1.53% | 8.40% | 5.28% | | Return on assets | | 12.25% | | | 0.98% | -3.53% | -1.99% | 0.70% | 4.30% | 2.76% | | Liabilities / equity | | 0.59 | 0.62 | 0.76 | 0.96 | 1.23 | 1.28 | 1.19 | 0.95 | 0.91 | | Current ratio | | 0.25 | 1.34 | 1.77 | 1.17 | 1.45 | 0.99 | 1.02 | 1.07 | 1.04 | ## As-reported value updates 4 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/NESR/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001698514.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2017-Q2 | 2017-06-30 | | 299,169 | | reported discrete quarter | | 2017-Q3 | 2017-09-30 | | -31,052 | | reported discrete quarter | | 2017-Q4 | 2017-12-31 | | -3,126,404 | | derived Q4 = FY annual - nine-month YTD | | 2018-Q1 | 2018-03-31 | | -1,851,707 | | reported discrete quarter | | 2026-Q1 | 2026-03-31 | 404,586,000 | 23,827,000 | 0.23 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 520,752,000 | 44,017,000 | 0.43 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1698514/000149315226036720/form10-q.htm Extracted from a substantive MD&A body after the formal Item 2 span was a TOC or reference stub. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-08-10 Report date: 2026-06-30 EXECUTIVE OVERVIEW Drivers of Our Financial Condition and Results of Operations As of the end of the three-month and six-month periods covered by this Quarterly Report, the conflict involving the United States, Israel and Iran, and the associated volatility in Brent crude oil prices, have not had a material adverse impact on our results of operations or financial condition. Demand for our services has remained resilient, supported in large part by continued customer investment in Saudi Arabia, including the Jufurah unconventional field, as well as sustained activity in certain of our other operating locations. However, the duration, scope and ultimate trajectory of the conflict remain uncertain, and any de-escalation or further escalation of the conflict, as well as related sanctions, supply disruptions or other geopolitical developments, could materially affect commodity prices, customer capital spending, and our results of operations and financial condition in future periods. For a full discussion of the drivers of our financial condition and results of operations, see the section entitled “Drivers of Our Financial Condition and Results of Operations” in Part II, Item 7 of our 2025 Annual Report. Key Performance Indicators As of the end of the three-month and six-month periods covered by this Quarterly Report, there have been no material changes regarding our key performance indicators. The following table shows rig count (Source: Baker Hughes Published Rig Count Data) and oil prices (Source: U.S. Energy Information Administration - Brent – Europe) as of the dates indicated. For a full discussion of our key performance indicators, see the section entitled “Key Performance Indicators” in Part II, Item 7 of our 2025 Annual Report. [[GREPCENT_TABLE]] [["","","As of"],["","","June 30, 2026","","","December 31, 2025"],["Rig count:"],["MENA","","","549","","","","565"],["Rest of World \u2013 outside of North America","","","524","","","","500"],["Total International Rig Count","","","1,073","","","","1,065"],["Brent Crude (per barrel)","","$","70.46","","","$","61.35"]] [[/GREPCENT_TABLE]] 17 RESULTS OF OPERATIONS We operate our business through two operating segments and report our results of operations through two reporting segments, Production Services and Drilling and Evaluation Services, which aggregate services performed during distinct stages of a typical life-cycle of an oil well. Production Services. Our Production Services segment includes the results of operations from services that are generally offered and performed during the production stage of a well’s lifecycle. These services mainly include hydraulic fracturing, coiled tubing, stimulation and pumping, cementing, nitrogen services, filtration services, pipelines and industrial services, production assurance, artificial lift services, completions and integrated production management. Our Production Services accounted for 63%, 63%, 62%, and 62% of our revenues for the three-month period ended June 30, 2026, the three-month period ended June 30, 2025, the six-month period ended June 30, 2026, and the six-month period ended June 30, 2025, respectively. Drilling and Evaluation Services. Our Drilling and Evaluation Services segment includes the results of operations from services that are generally offered and performed during pre-production stages of a well’s lifecycle and related mainly to the operation of oil rigs. The services mainly include rigs and integrated services, fishing and downhole tools, thru-tubing intervention, tubular running services, directional drilling, drilling and completion fluids, pressure control, well testing services, wireline logging services and slickline services. Our Drilling and Evaluation Services accounted for 37%, 37%, 38%, and 38%, of our revenues for the three-month period ended June 30, 2026, the three-month period ended June 30, 2025, the six-month period ended June 30, 2026, and the six-month period ended June 30, 2025, respectively. For a full discussion of our reportable segments, see the section entitled “Business” in Part I, Item 1 of our 2025 Annual Report. Key Components of Revenues and Expenses As of the end of the three-month and six-month periods covered by this Quarterly Report, there have been no material changes to our key components of revenues and expenses. See the section entitled “Key Components of Revenues and Expenses” in Part II, Item 7 of our 2025 Annual Report for more information. 2026 compared to 2025 The following table presents our Condensed Consolidated Statements of Operations (Unaudited) data for the periods indicated (in US$ thousands): [[GREPCENT_TABLE]] [["","","For the three-month period ended","","","For the six-month period ended"],["Description","","June 30, 2026","","","June 30, 2025","","","June 30, 2026","","","June 30, 2025"],["Revenues","","$","520,752","","","$","327,368","","","$","925,338","","","$","630,470"],["Cost of services","","","(439,460",")","","","(283,484",")","","","(792,215",")","","","(549,131",")"],["Gross profit","","","81,292","","","","43,884","","","","133,123","","","","81,339"],["Selling, general and administrative expenses (excluding Amortization)","","","(12,018",")","","","(12,099",")","","","(23,121",")","","","(23,920",")"],["Amortization","","","(4,433",")","","","(4,694",")","","","(9,126",")","","","(9,387",")"],["Operating income","","","64,841","","","","27,091","","","","100,876","","","","48,032"],["Interest expense, net","","","(7,038",")","","","(8,562",")","","","(13,581",")","","","(16,846",")"],["Other income / (expense), net","","","1,115","","","","940","","","","2,564","","","","1,999"],["Income before income tax","","","58,918","","","","19,469","","","","89,859","","","","33,185"],["Income tax expense","","","(14,901",")","","","(4,268",")","","","(22,015",")","","","(7,593",")"],["Net income","","$","44,017","","","$","15,201","","","$","67,844","","","$","25,592"]] [[/GREPCENT_TABLE]] Revenue. Revenue was $520.8 million for the three-month period ended June 30, 2026, compared to $327.4 million for the three-month period ended June 30, 2025, and $925.3 million for the six-month period ended June 30, 2026, compared to $630.5 million for the six-month period ended June 30, 2025. The table below presents our revenue by segment for the periods indicated (in US$ thousands): [[GREPCENT_TABLE]] [["","","For the three-month period ended","","","For the six-month period ended"],["","","June 30, 2026","","","June 30, 2025","","","June 30, 2026","","","June 30, 2025"],["Reportable Segment:"],["Production Services","","$","329,732","","","$","205,061","","","$","570,777","","","$","393,148"],["Drilling and Evaluation Services","","","191,020","","","","122,307","","","","354,561","","","","237,322"],["Total revenue","","$","520,752","","","$","327,368","","","$","925,338","","","$","630,470"]] [[/GREPCENT_TABLE]] 18 Production Services revenue was $329.7 million for the three-month period ended June 30, 2026, compared to $205.1 million for the three-month period ended June 30, 2025, and $570.8 million for the six-month period ended June 30, 2026, compared to $393.1 million for the six-month period ended June 30, 2025. The change in revenue was primarily due to increased hydraulic fracturing stages in Saudi Arabia. Drilling and Evaluation Services revenue was $191.0 million for the three-month period ended June 30, 2026, compared to $122.3 million for the three-month period ended June 30, 2025, and $354.6 million for the six-month period ended June 30, 2026, compared to $237.3 million for the six-month period ended June 30, 2025. The change in revenue was primarily due to increased well testing and to a lesser extent, wireline logging activity in Saudi Arabia. Cost of services. Cost of services was $439.5 million for the three-month period ended June 30, 2026, compared to $283.5 million for the three-month period ended June 30, 2025, and $792.2 million for the six-month period ended June 30, 2026, compared to $549.1 million for the six-month period ended June 30, 2025. Cost of services as a percentage of total revenue was 84.4%, 86.6%, 85.6% and 87.1% for the three-month period ended June 30, 2026, the three-month period ended June 30, 2025, the six-month period ended June 30, 2026, and the six-month period ended June 30, 2025, respectively. The change in cost of services as a percentage of total revenue is mainly due to increased activity levels in the period ended June 30, 2026, as compared to the prior year period, reflecting improved cost absorption as revenue scaled. Cost of services included depreciation expense of $31.7 million, $29.3 million, $60.8 million and $58.8 million for the three-month period ended June 30, 2026, the three-month period ended June 30, 2025, the six-month period ended June 30, 2026, and the six-month period ended June 30, 2025, respectively. Gross profit. Gross profit was $81.3 million for the three-month period ended June 30, 2026, compared to $43.9 million for the three-month period ended June 30, 2025, and $133.1 million for the six-month period ended June 30, 2026, compared to $81.3 million for the six-month period ended June 30, 2025. Gross profit as a percentage of total revenue was 15.6%, 13.4%, 14.4% and 12.9% for the three-month period ended June 30, 2026, the three-month period ended June 30, 2025, the six-month period ended June 30, 2026, and the six-month period ended June 30, 2025, respectively. The change in trend is described under “Revenue” and “Cost of services.” SG&A expense. SG&A expense, which represents costs associated with managing and supporting our operations, was $12.0 million for the three-month period ended June 30, 2026, compared to $12.1 million for the three-month period ended June 30, 2025, and $23.1 million for the six-month period ended June 30, 2026, compared to $23.9 million for the six-month period ended June 30, 2025. SG&A expense as a percentage of total revenue was 2.3%, 3.7%, 2.5% and 3.8% for the three-month period ended June 30, 2026, the three-month period ended June 30, 2025, the six-month period ended June 30, 2026, and the six-month period ended June 30, 2025, respectively. The decrease in SG&A expense in the six months ended June 30, 2026, was primarily attributable to lower spending on activities related to the remediation of the Company’s material weakness, as the Company completed remediation as of June 30, 2025, and therefore incurred significant remediation-related costs during the six-month period ended June 30, 2025. Amortization expense. Amortization expense was $4.4 million for the three-month period ended June 30, 2026, compared to $4.7 million for the three-month period ended June 30, 2025, and $9.1 million for the six-month period ended June 30, 2026, compared to $9.4 million for the six-month period ended June 30, 2025. Amortization expense is driven mainly by acquired intangible assets resulting from acquisitions. Interest expense, net. Interest expense, net, was $7.0 million for the three-month period ended June 30, 2026, compared to $8.6 million for the three-month period ended June 30, 2025, and $13.6 million for the six-month period ended June 30, 2026, compared to $16.8 million for the six-month period ended June 30, 2025. Interest expense, net, decreased period-over-period, due to lower debt levels during 2026 as compared to 2025. Other income, net. Other income, net, was $1.1 million for the three-month period ended June 30, 2026, compared to $0.9 million for the three-month period ended June 30, 2025, and $2.6 million for the six-month period ended June 30, 2026, compared to $2.0 million for the six-month period ended June 30, 2025. Income tax expense. Income tax expense was $14.9 million for the three-month period ended June 30, 2026, compared to $4.3 million for the three-month period ended June 30, 2025, and $22.0 million for the six-month period ended June 30, 2026, c [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1698514/000149315226009139/form10-k.htm Complete FY 2025 MD&A: /company/NESR/mda/fy2025/ Extracted from Item 7 to the first post-MD&A boundary after HTML sanitization. Confidence: high Filing date: 2026-03-06 Report date: 2025-12-31 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis is provided to increase the understanding of, and should be read in conjunction with the accompanying consolidated financial statements and related notes. In addition, see Item 1A, “Risk Factors” and the “Forward-Looking Statements” included in this Annual Report. for a discussion of the risks, uncertainties and assumptions associated with these statements. Unless otherwise noted, all amounts discussed herein are consolidated. EXECUTIVE OVERVIEW Drivers of Our Financial Condition and Results of Operations We are a provider of services to the oil and natural gas industry primarily in the MENA region. We currently operate in 16 countries, with a strong presence in Saudi Arabia, Oman, Kuwait, UAE, Iraq, Egypt, Libya, and Algeria. Our company was founded with a vision of creating a regional provider for oilfield services that offers a full portfolio of solutions for our customers with a focus on supporting the economies in which we operate. ESG considerations are central to our Company, and we believe that employing local staff and fully integrating with regional economies is a critical part of the social component of our ESG philosophy. In addition, we have found that promoting high local content in our operations optimizes our cost structure, enhancing our ability to generate free cash flow in various commodity price environments. Customer investment in oil and natural gas exploration, field development, and production is driven by multiple factors, including global energy supply and demand forecasts, geopolitical and economic conditions in key operating regions, and expectations for future oil and natural gas prices. During the years ended December 31, 2025, 2024, and 2023, approximately 99%, 99%, and 99%, respectively, of our revenue was generated from operations in the MENA region. According to the Energy Institute Statistical Review of World Energy 2025 (74th edition), the Middle East accounts for nearly one-third of global oil production, underscoring the region’s critical role in global energy supply. NESR’s strong presence in these markets provides a unique competitive advantage. Many MENA economies are structurally dependent on the energy sector as their primary source of national revenue and therefore maintain consistent production and development activity, even in periods of lower commodity prices. With some of the lowest break-even costs of production globally, Middle Eastern producers continue to invest through cycles, enabling NESR to benefit from a stable demand base and long-term customer relationships. This strategic geographic focus positions NESR to deliver resilient financial performance and sustainable growth, even amid broader market volatility. Key Performance Indicators Historically, we have monitored two principal non-financial performance indicators that serve as key drivers of our results of operations: oil prices and rig count. Oil price trends are significant because the level of spending by our customers is heavily influenced by expectations of future oil prices, which reflect anticipated global supply and demand dynamics. Fluctuations in spending directly affect the demand for our services. Rig count, particularly in the regions where we operate, serves as an indicator of the level of drilling activity and capital investment. Historically, changes in rig count have correlated closely with our financial performance and operational activity levels. In recent years, our customers, particularly in certain parts of the MENA region, have increased their focus on natural gas development, including the commercialization of unconventional gas resources. Over time, we expect the natural gas market to become an additional key performance indicator for the Company, reflecting its growing importance in regional energy strategies and our expanding participation in that segment. The following table shows rig count (Source: Baker Hughes Published Rig Count Data) and oil prices (Source: U.S. Energy Information Administration - Brent – Europe) as of the dates indicated: [[GREPCENT_TABLE]] [["","","As of December 31,"],["","","2025","","","2024","","","2023"],["Rig count:"],["MENA","","","565","","","","591","","","","379"],["Rest of World \u2013 outside of North America","","","500","","","","523","","","","576"],["Total International Rig Count","","","1,065","","","","1,114","","","","955"],["Brent Crude (per barrel)","","$","61.35","","","$","74.58","","","$","77.69"]] [[/GREPCENT_TABLE]] RESULTS OF OPERATIONS We operate our business through two operating segments and report our results of operations through two reporting segments, Production Services and Drilling and Evaluation Services, which aggregate services performed during distinct stages of a typical life cycle of an oil and gas well. 39 Production Services. Our Production Services segment includes the results of operations from services that are generally offered and performed during the completion and production stages of a well’s lifecycle. These services mainly include hydraulic fracturing, coiled tubing, stimulation and pumping, cementing, nitrogen services, filtration services, pipelines and industrial services, production assurance, artificial lift services, completions and integrated production management. Our Production Services segment accounted for 62%, 67%, and 69%, of our revenues for the years ended December 31, 2025, 2024, and 2023, respectively. Drilling and Evaluation Services. Our Drilling and Evaluation Services segment includes the results of operations from services that are generally offered and performed during the well construction stage of a well’s lifecycle and related mainly to the operation of drilling rigs. The services mainly include rigs and integrated services, fishing and downhole tools, thru-tubing intervention, tubular running services, directional drilling, drilling and completion fluids, pressure control, well testing services, wireline logging services and slickline services. Our Drilling and Evaluation Services accounted for 38%, 33%, and 31%, of our revenues for the years ended December 31, 2025, 2024, and 2023, respectively. Please see “Principal Activities” within Item 1, “Business” in this Annual Report for additional description of our reportable segments. Key Components of Revenues and Expenses Revenues We earn revenue from our broad suite of oilfield services, including coiled tubing, hydraulic fracturing, cementing, stimulation and pumping, well testing services, drilling services and rental, fishing and remediation, drilling and workover rigs, nitrogen services, wireline logging services, turbines drilling, directional drilling, filtration services and slickline services, among others. Revenues are recognized when performance obligations are satisfied in accordance with contractual terms, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services rendered or rentals provided. A performance obligation arises under contracts with customers to render services or provide rentals and is the unit of account under Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. The Company accounts for services rendered and rentals provided separately if they are distinct, and the service or rental is separately identifiable from other items provided to a customer and if a customer can benefit from the services rendered or rentals provided on its own or with other resources that are readily available to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. A contract’s standalone selling prices are determined based on the prices that the Company charges for its services rendered and rentals provided. Most of the Company’s performance obligations are satisfied over time, which is generally represented by a period of 30 days or less. The Company’s payment terms vary by the type of products or services offered. The term between invoicing and when the payment is due is typically 30-60 days per contract. Cost of services Cost of services primarily includes staff costs for service personnel, purchase of non-capitalized material, equipment and supplies (such as tools and rental equipment), depreciation relating to capital assets used in our operations, vehicle and equipment rental and maintenance and repair. Selling, general and administrative (excluding Amortization) (“SG&A”) expense SG&A expense, excluding Amortization, which is presented separately, primarily includes salary and employee benefits for non-production personnel (primarily management and administrative personnel), professional service fees, office facilities and equipment, office supplies and non-capitalized office equipment and depreciation of office furniture and fixtures. Amortization Amortization expense primarily includes amortization of intangible assets associated with acquired customer contracts, trademarks and tradenames. 40 Interest expense, net Interest expense primarily consists of interest on outstanding debt, net of interest income. Other income / (expense), net Other income / (expense), net primarily consists of inventory scrap sales, bank charges and foreign exchange gains and losses. The discussions below relating to significant line items from our consolidated statements of operations are based on available information and represent our analysis of significant changes or events that impact the fluctuations in or comparability of reported amounts. Where appropriate, we have identified specific events and changes that affect comparability or trends. In addition, the discussions below for revenues are on an aggregate basis for each fiscal period, as the business drivers for all services are similar. All amounts in tables are in US$ thousands, except share data and per share amounts. Fiscal Year 2025 compared to Fiscal Year 2024 The following table presents our Consolidated Statements of Operations data for the periods indicated: [[GREPCENT_TABLE]] [["","","Year ended"],["Description","","December 31, 2025","","","December 31, 2024"],["Revenues","","$","1,324,047","","","$","1,301,704"],["Cost of services","","","(1,159,317",")","","","(1,093,031",")"],["Gross profit","","","164,730","","","","208,673"],["Selling, general and administrative expenses (excluding Amortization)","","","(47,636",")","","","(52,195",")"],["Amortization","","","(18,774",")","","","(18,774",")"],["Operating income","","","98,320","","","","137,704"],["Interest expense, net","","","(32,513",")","","","(39,881",")"],["Other (expense) / income, net","","","(5,409",")","","","(2,325",")"],["Income before income tax","","","60,398","","","","95,498"],["Income tax expense","","","(9,266",")","","","(19,188",")"],["Net income","","$","51,132","","","$","76,310"]] [[/GREPCENT_TABLE]] Revenue. Revenue was $1,324 million for the year ended December 31, 2025, compared to $1,301.7 million for the year ended December 31, 2024. The table below presents our revenue by segment for the periods indicated: [[GREPCENT_TABLE]] [["","","Year ended"],["","","December 31, 2025","","","December 31, 2024"],["Reportable Segment:"],["Production Services","","$","815,999","","","$","878,076"],["Drilling and Evaluation Services","","","508,048","","","","423,628"],["Total revenue","","$","1,324,047","","","$","1,301,704"]] [[/GREPCENT_TABLE]] Production Services revenue was $816.0 million for the year ended December 31, 2025, compared to $878.1 million for the year ended December 31, 2024. The change in revenue was primarily due to reduced hydraulic fracturing stages upon contract transition coupled with reduced coiled tubing activity in Saudi Arabia, and offset in part by higher specia [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/NESR/mda/fy2025/ All MD&A years: /company/NESR/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2017 MD&A](/company/NESR/mda/fy2017/): filed 2018-03-27; accession 0001493152-18-003973 (https://www.sec.gov/Archives/edgar/data/1698514/000149315218003973/form10-k.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 1389 Oil & Gas Field Services, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/NESR.md · JSON record: /company/NESR.json · verified financials: /company/NESR/financials.json / /company/NESR/financials.csv · machine TOC for the whole site: /llms.txt